Key benchmark indices extended losses and hit fresh intraday low in afternoon trade as selling intensified. At 13:24 IST, the barometer index, the S&P BSE Sensex, was down 46 points or 0.13% at 35,489.79. The Nifty 50 index was down 19.90 points or 0.18% at 10,786.60. Investors were cautious ahead of Karnataka Assembly poll results tomorrow, 15 May 2018.
Domestic stocks drifted higher in early trade on positive Asian stocks. Early sentiment was also boosted after exit polls reportedly showed that the Bharatiya Janata Party could emerge as the single largest party in Karnataka. Key benchmark indices extended gains and hit fresh intraday high in morning trade. Stocks trimmed gains in mid-morning trade. Indices hit fresh intraday low in afternoon trade.
The S&P BSE Mid-Cap index was off 0.70%. The S&P BSE Small-Cap index was off 0.65%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 809 shares rose and 1686 shares fell. A total of 149 shares were unchanged.
Metal shares were mixed. Hindustan Copper (down 2.63%), NMDC (down 1.42%), National Aluminium Company (down 1.35%), Vedanta (down 1.29%), Steel Authority of India (down 0.68%) and Hindustan Zinc (down 0.3%), edged lower. Hindalco Industries (up 0.21%), JSW Steel (up 0.80%), Tata Steel (up 0.88%) and Jindal Steel & Power (up 1.74%), edged higher.
Pharmaceutical shares were mixed. Dr Reddy's Laboratories (up 2.25%), Sun Pharmaceutical Industries (up 2.12%), Wockhardt (up 1.47%), Aurobindo Pharma (up 1.44%), Lupin (up 1.34%), Cadila Healthcare (up 0.66%), GlaxoSmithKline Pharmaceuticals (up 0.27%) and Cipla (up 0.20%), edged higher. Piramal Enterprises (down 0.49%), Alkem Laboratories (down 0.79%), Glenmark Pharmaceuticals (down 0.92%), IPCA Laboratories (down 1.05%), Divi's Laboratories (down 1.46%) and Strides Shasun (down 3.15%), edged lower.
On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index, stood at 3.18% (provisional) for the month of April 2018 (over April 2017) as compared to 2.47% (provisional) for the previous month and 3.85% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.69% compared to a build up rate of 0.00% in the corresponding period of the previous year. The data was released by the government during market hours today, 14 May 2018.
The government will announce consumer price inflation (CPI) for April 2018 after market hours today, 14 May 2018. CPI stood at 4.28% in March 2018.
India's industrial production (base year 2011-12=100) moderated to five-month low of 4.4% in March 2018 over March 2017, after healthy growth in the range of 7% to 8.5% for last four straight months. The deceleration in industrial production growth has moderated mainly driven by moderation in the manufacturing sector's production growth to 4.4% in March 2018. However, the growth of electricity generation output accelerated to 5.9%, while the mining output rebounded 2.8% in March 2018 after 0.4% decline in February 2018. The data was announced by government after market hours on Friday, 11 May 2018.
On the political front, exit polls reportedly showed that Karnataka could return a split verdict with the Bharatiya Janata Party as the single largest party. The Karnataka Assembly elections in a single-phase polling were held on Saturday, 12 May 2018. Polling was held in 222 constituencies of the 224-member assembly. Results will be announced tomorrow, 15 May 2018. Karnataka is one of only three states to be ruled by the Congress.
Overseas, European stocks were trading lower as investors focused on Italian politics, trade relations between the US and China, and a dip in oil prices.
Asian stocks were trading higher on signs the United States and China were toning down their trade war rhetoric. US stocks edged higher on Friday, 11 May 2018 amid growing conviction that inflation will remain tame and as trade tensions eased.
Meanwhile, US reportedly plans to reintroduce sanctions against Iran have stoked anxiety in the Middle East. Iran pumps about 4% of the world's oil, and the latest development has sent oil prices near multi-year highs. The US threatened on Sunday to impose sanctions on European companies that do business with Iran, as the remaining participants in the Iran nuclear accord stiffened their resolve to keep that agreement operational.
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